Ana Bank offers four kind of loans, each yielding varying annual interest rates to the bank:...
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Ana Bank offers four kind of loans, each yielding varying annual interest rates to the bank: Home Sweet Home Mortgage 14% Golden Home Mortgage 20% Personal Loan 20% Student Loan 10% The maximum foreseeable lending capacity of Ana Bank is $ 250 million, and has some policies that restrict its operations: 1. Home Sweet Home Mortgages must be at least 55% of all mortgages issued and at least 25% of all loans issued. 2. Golden Home Mortgages cannot exceed 25% of all loans issued. 3. to avoid public displeasure and the introduction of a new windfall tax the average interest rate on all loans must not exceed 15%. Formulate Ana Bank's loan problem as a Linear Programming model. Ana Bank offers four kind of loans, each yielding varying annual interest rates to the bank: Home Sweet Home Mortgage 14% Golden Home Mortgage 20% Personal Loan 20% Student Loan 10% The maximum foreseeable lending capacity of Ana Bank is $ 250 million, and has some policies that restrict its operations: 1. Home Sweet Home Mortgages must be at least 55% of all mortgages issued and at least 25% of all loans issued. 2. Golden Home Mortgages cannot exceed 25% of all loans issued. 3. to avoid public displeasure and the introduction of a new windfall tax the average interest rate on all loans must not exceed 15%. Formulate Ana Bank's loan problem as a Linear Programming model.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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